Related Articles

Buying a condo requires an attention to detail not required when looking to rent. Unlike renters, condo buyers must be vigilant as many hidden costs are associated with buying that simply don't exist when renting. Buyers are liable for all of the costs required to maintain the condo building and all of the common areas. These hidden costs can offset the many advantages provided by condos if buyers are not careful when selecting a condo to purchase.

1

Examine the financial health of the condo building before purchasing the condo. The law requires condo building managers to allow prospective buyers access to the building's financial records prior to closing. Ensure that funds are being placed in the building's reserve fund for maintenance and that the condo building's expenses do not exceed the revenues. This is important as many buildings face revenue shortfalls due to foreclosures in the building and unpaid dues.

2

Verify that no special assessments are in place or have been levied in the past. Special assessments are needed when the funds in the building's reserve are insufficient to pay for required repairs or maintenance. In addition to adding to the actual cost of owning a condo unit, frequent special assessments can be a sign of a poorly operated building.

3

Ask about any potential changes to the condo building's by-laws that might be under consideration. Changes to the building's by-laws have the potential to not only affect the future enjoyment of an individual condo unit but also the resell value.

4

Ensure that the condo building's tenants are not currently involved in any building wide disputes. Even seemingly mundane issues like that of pets or age restrictions can quickly become ugly and interfere with the long-term enjoyment of the condo unit.

About the Author

Luther Blissett has written for a variety of online publications, blogs and newspapers on topics ranging from technology to politics. He runs his own small business. Blissett holds a B.A. in history and a J.D.